It is available up to 85% loan to value; there is no mortgage indemnity guarantee and there are no redemption penalties following the benefit period. The pay rate at the end of five years reverts to base rate plus 1.75% for the life of the mortgage.
Commenting on the loan, Marc Turner, head of sales at Abacus Permanent, said: "We are delighted to offer this competitive product to intermediaries and their clients. In the current climate of uncertainty and with interests rates at a 50 year low, many clients are looking to fix their mortgage repayments for longer periods of time. And to assist them in this we have made sure that this is one of the most competitive five year fixed self-cert products on the market. Unlike some other lenders, we have placed less restrictions on the product by making it available to 85% loan to value as well as to first-time buyers and coupled with excellent procuration fees we are confident this product will be well received by the market."
